The Advantages of Paying Rent Upfront
An upfront rental payment could be the one thing that sets a prospective tenant apart from others when several people are vying to rent the same apartment. However, the overall advantage of paying rent in advance may be minimal, unless the renter has a weak credit history.
Landlords
Landlords usually require renters to pay a portion of the rent upfront. Many require applicants to pay the first month's rent, but others require the last month's rent, as well. Such requirements mostly benefit the landlord. However, prospective tenants may benefit from paying whatever rent the landlord requires in advance to get the type of apartment or other housing they want.
Competitive Markets
People who are able to pay as much as six to 12 months of rent in advance may improve their chances for having their rental applications approved by a landlord. Offering large payments in advance may be advantageous in markets where competition among renters is stiff, because affordable rental rates and rental housing are in short supply. You may be able to negotiate a discount if you offer a landlord as much as a year's worth of rent in advance. However, a landlord who knows he can easily rent an apartment at the full rental rate may not be willing to offer you a discount.
Credit Problems
Those with past credit problems may be concerned that landlords will reject their rental applications after checking their credit histories. In such cases, prospective tenants may be able to reduce concerns about them being a high credit risk by paying several months of rent upfront. Furthermore, tenants who have little or no credit history may not be required to get a co-signer on a lease to guarantee their rental payments if they pay several months of rent in advance.
Considerations
Tenants lose some of their bargaining power by paying all of their rent upfront. For example, the Nolo law information website notes that tenants can withhold their rent payments in some cases if a landlord doesn't make required repairs. Tenants who make advance rental payments could sue to recoup their money if a landlord fails to make repairs. However, suing a landlord can be a long process that costs a tenant even more money in legal fees. You have to determine if such risks outweigh the advantages of paying rent upfront. Consider asking other tenants about their experiences with repair requests before signing a lease.
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